if clear payday loan within withdrawal period = doesn't go on credit file?

is_ok

Long time reader, first time poster. Grateful for the advice I've read and used on here. Have a specific question I can't seem to find using search on here or Google.

I took a payday loan 8 days ago. 600ish over a 5-month period to pay back 1000ish in total. I can now afford to clear the initial amount plus interest.

Is there any benefit to clearing a payday loan within the withdrawal/cooling-off period? Will this take it off your credit file as if you never took the loan?

I've read that having a payday loan on your file, even if paid off, adversely impacts lending decisions in future, so am keen to avoid this if using the cooling-off period will work.

PeacefulWaters

Try it, find out, report back.

National_Debtline

Hi is_ok

Under the Consumer Credit Act you have 14 days to withdraw from a credit agreement. Experian have confirmed they will remove the record of the agreement from your credit file, but the other credit reference agencies may mark the agreement as repaid. You would need to contact Equifax and Callcredit to confirm this with them.

It’s worth bearing in mind that different creditors use different credit reference agencies. Even if only Experian removed the payday loan, it could be beneficial for you in the future.

Susie
@natdebtline